Benefits of Family Wealth Plan
1. Keep Your Children Out Of Child Protective Services
Scenario #1: After Sara dropped off her adorable son and daughter at school, she went to the gym. Her husband Johnson is on a business trip to Italy. Sara’s sister Selina will pick up the kids. Sara got into a car accident on her way home.
Scenario #2: Sara and Johnson are on vacation and have their kids taken care of by Sara’s sister Selina.
In either scenario, we don’t want to think about what will happen but think for a second. After the accident happen to Sara and Johnson, who has the right to pick up their children from school? Who will feed them? Who will take care of them and where they will sleep? Who will choose the best school for them? Who will make sure they have healthcare? If Sara and Johnson don’t have the right documents in place, their kids will end up in Child Protective Services, even though the kids want to stay with Aunt Selina and Selina want to take them home. Why let your children end up in Child Protective Services and let the court decide who will raise your kids and how?
2. Avoid Probate Proceedings
If Sara and Johnson die with a simple will without a living trust, their assets will be “frozen” and the court is forced to handle the distribution of their asset and the guardianship of their children. If they die with a living trust and have the living trust funded correctly, the court has no jurisdiction over your asset distribution and guardianship. Data shows the average cost for the probate proceeding is $30k-$50k in Texas.
3. Your Beneficiary Will Inherit Assets Quicker
4. Eliminates Family Messes
With an estate planning in place, you and your husband can decide which children inherit which portion of your asset, at what age, or under what conditions. You also have the right to have your children be joint trustees or sole trustees. This appropriate arrangement put your heir’s mind in place and avoids the future family’s battle for $$ million estate.
5. Minimize Estates Taxes
Some living trusts (such as irrevocable living trusts) can reduce or avoid estate taxes.
6. Protect Your Assets from Your Children’s Potential Creditors, Future Spouse, and Bankruptcy
With the extra asset protection, your assets can be managed by the uninterested party, then your children’s creditors cannot reach your assets, and your assets will be protected and can only be used for your children’s education, health, maintenance, and support throughout his or her life.